Nordea Bank (OTC) ( (NRDBY) ) has released its Q1 earnings. Here is a breakdown of the information Nordea Bank (OTC) presented to its investors.
Nordea Bank, a leading financial services group in the Nordic region, offers a wide range of banking services including personal banking, business banking, and wealth management. Known for its strong capital position and strategic investments, Nordea operates across Denmark, Finland, Norway, and Sweden.
In the first quarter of 2025, Nordea reported a resilient financial performance despite a challenging economic environment. The bank’s total income declined by 4% year-on-year due to lower net interest income, but showed a 1% increase quarter-on-quarter. Operating profit decreased by 9% year-on-year but improved by 10% from the previous quarter, reaching EUR 1.6 billion.
Key financial metrics highlighted include a strong return on equity at 15.7% and earnings per share of EUR 0.35. Mortgage lending and deposit volumes saw growth, with mortgage lending up 6% year-on-year, largely due to the acquisition of Danske Bank’s personal customer and private banking business in Norway. The bank also maintained strong credit quality, with net loan losses significantly below long-term expectations.
Nordea continued its strategic investments in technology and digital services, contributing to a 5% increase in costs. The bank’s capital generation remained robust, supporting ongoing share buy-back programs and maintaining a CET1 ratio of 15.7%, comfortably above regulatory requirements.
Looking ahead, Nordea remains committed to delivering a return on equity above 15% for 2025. The bank’s diversified loan portfolio and strong capital position are expected to support continued growth and shareholder returns through strategic capital deployment and share buy-backs.